HomeMy WebLinkAbout2007 07-30 CCP Joint Work Session with Financial Commission AGENDA
TY IL FINANCIAL COMI�RSSION JOINT WORK SESSION
CI C�UNC
July 30, 2007
6:30 P.M.
CounciUCommission Conference Room,
l. Call to Order
2. Review Budget Outcomes Draft 1
3. Review Revenue Forecast based on 2% increase in Price of Government"
4. Review Preliminary General Fund Expenditure Estimates
5. Review Budget Meeting Schedule
6. Other
7. Adj ournment
i
MIl�IUTES OF T`F� PROCEEDINGS OF THE CITY COUNCIL
OF TI� CITY OF BROOKLYN CENTER IN TI� COUNTY
OF HENNEPIN AND TF� STATE OF MINNESOTA
JOINT VJORK SESSION WITH FINANCIAL COMMISSION/SPECIAL CITY COUNCIL
MEETIl�G
JUNE 18, 2Q07
CITY HALL COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council met in Joint Work Session with the Financial Commission and
was called to order by Mayor Tim Willson at 6:30 p.m.
ROLL CALL
Mayor Tim VJillson and Councilmembers Kay Lasman, Mary O'Connor, Dan Ryan, and Mark
Yelich. Also present: Cily Manager Curt Boganey, Fiscal and Support Services Director Dan Jardet,
and Deputy City Clerk Camille VJorley.
Others present were Financial Commission Chairperson ivlark Nemec and Commissioners Philip
Berglin, Todd Boster, Jessica Roerick, Susan Shogren Smith, and Rex Newman.
Financial Commissioner Gene Maze was absent and unexcused.
RESOLUTION NO. 2007-88 IN SUPPORT OF A 2007 SPECIAL LEGISLATIVE
SESSION TO CONSIDER THE OMNIBUS TAX BILL (CITY COUNCIL ONLi�
An opinion was expressed that cities should not receive aid and therefore should take caxe of
themselves.
Councilmember Lasman moved, Councilmember Ryan seconded to approve Resolutian No. 2007-8 8
in Support of a 2007 Special Legislative Session to Consider the Omnibus Tax Bill.
Councilmember O' Cannor voted against the same. Motion passed.
BUDGETING FOR OUTCOME DISCUSSION
a. GENERAL OVERVIEW
b. SET THE PRICE OF GOVERNMENT
c. ESTABLISHING THE PRIORITIES OF GOVERNMENT
06/ 11 /07 -1- DRAFT
City Manager Curt Boganey referenced: Your Budget: From �e to Aim and discussed the
following first two steps adopted by The Government Finance Officers Association as a
"recommended practice:"
1. Determine how much money is available.
2. Prioritize the results desired.
He discussed setting the Price of Government, how much citizens are willing to spend and how it
relates to the City of Brooktyn Center. He distributed and discussed the revenues collected by the
City and the 2008 forecast of such. He also discussed T� Increment Revenaes, Franchising Fees,
Lodging Fees, Unrestricted Investment Income, Charges for Service, Grants and Contributions, and
Utilities. He asked the City Council and Financial Commission what they thought was acceptable
for the citizens of Brooklyn Center and if the current taxation is too low, about right, or too high.
There was discussion on the current ta.xation of Brooklyn Center and an opinion was expressed that
the housing market may affect the amount citizens are able to pay. An opinion was also expressed
regaxding the loss af businesses in the City and its effects on the distribution of taxes throughout the
City.
Fiscal and Support Services Director Dan Jordet explained the effects of Tax Increment Financing
and vacant businesses on the amount paid by tax payers.
Mr. Boganey discussed the Price of Government being all things considered including property
ta.xes, utility rates, and charges for services. He opened the discussion of what Price of Government
increase, if any would be acceptable to Brooklyn Ce.nter residents.
There were several opinions expressed regarding the appropriate Price of Government.
It was the majority consensus of the City Council a.nd the Financial Commission to use an increase
of 2% in the Price of Government over the current year's budget as a maximum budget target.
Each member of the City Council and Financial Commission indicated three ways success will be
measured in regard to the eight goals set by the City Council. Following are the results of the
exercise:
#1 Chan�in� Demo�r�vhics and Increasin¢ Diversitv will be a Communitv Asset
1. NeighborhoodsBusinesses
2. Representa.tion of Government and Staff
3. Civic and Recreation Community Events
#2 Enforcement �f Nei�hborhood Citv Codes will Imvrove
l. Violation and Complaints Resolved Prampdy
2. Residential and Commercial Neighborhoods Look Better
06/l 1/07 -2- DRAFT
3. Housing Values Improve
4. Rental Properties Properly Licensed
#3 Citv Infrastructure will be Maintained and Up�raded as Needed
1. Reduce/Improve Average Age of Infrastructure
2. Reduce Cost of Operations
3. Fewer System Failures
4. Increase in Property Values
#4 Communitv Members will Feel Safe and Secure as Crime is Bein� Reduced,
1. Reduced Crimes in Taxgeted (problem) Areas/Properties
2. Citizen Feedback/Perception
3. Reduced Crime Rates in all Classes of Crimes
#5 Citv Redeveloament Plans will Proceed Aaressivelv
1. Tax Base Growth
2. Completion of Current Projects
3. Reduced Need for Tax Increment
4. Reduction/Eliminate of Budgeted Properties
#6 Financial StabilitV of the Citv Government will be Ensured,
1. Band Rating Maintained
2. Favorable Debt Ra.tio/Less Debt
3. Sta.bility of Revenue Resources
4. Sufficient/Adequate Reserves
#7 The Oualit� of the Ezisting Housina Stock will Imurove
l. Decrease Single Family Renta.l Properiy/Increase Owner Occupied Housing
2. Increase Remodeling Permits
3. Increase Median Income of Households
4. Reduced Housing Maintenance Violations
#S Pro�ertv Tazes will be Louvered or Maintained,
1. Eliminate/Reduce Captured Tax Capacity
2. Citizen Feedback Perception
3. More LGA
4. Increased Tax Base
5. No Increase in Tax Levy
6. Improved Comparative Ranking
Mr. Boganey indicated that he would condense the results to the top three per goal and return the
infonnation to the City Council a.nd Financial Commission.
06/11/07 -3- DRAFT
OTAER BUSINESS
There was no Other Business discussed.
ADJOURNiVIENT
Councilmember Lasman moved and Councilmember Ryan seconded to adjourn the Work Session at
10:50 p.m.
Motion passed unanimously.
06/11/07 -4- DRAFT
BUDGET OUTCOMES DRAFT #1
#1 Changin� Demo�ranhics and Increasin� Diversitv witl be a Communitv Asset
1. Neighborhoods/Businesses will reflect the diversity of the community
2. Representation of Government and staff will reflect the diversity of the community
3. Civic, Recreational and Community event participation will reflect the diversity of the community
#2 Enforcement of Nei�hborhood Citv Codes will Im�rove
l. Ordinance Violations and Complaints of Violations Regarding Neighbor Conditions will be Resolyed
Prompfly
2. Residential and commercial neighborhoods will be more attractive
3. Housing values will Improve
4. Rental properties will be properly licensed
#3 Citv Infrastructure will be Maintained and Uo�raded as Needed
1. We will extend the average useful life of City Infrastructure
2. Cost of infrastructure maintenance and operations will be reduced
3. There will be fewer system failures
4. Property values will in increase
#4 Communitv Members will Feel Safe and Secure as Crime is Bein� Reduced
1. Crimes in tatgeted (problem) areas/properties will be reduced
2. Citizen feedbacklperception regarding safety, security and crime will improve
3. Crime rates in all classes of crimes will be reduced
#5 Citv Redeveloament Plans will Proceed Ae�ressivelv
1. The City tax base will grow
2. Current redevelopment projects will be completed
3. The need for taac increment financial assistance will reduce
4. Blighted properties will be reduced/eliminated
#6 Financial Stabilitv of the Citv Government will be Ensured
L The current investment grade bond rating will be maintained or improved
2. The City will maintain a favorable debt ratio and or reduce outstanding debt
3. The City will rely upon stable revenue sources
4. The City will maintain sufficiendadequate reserves
#7 The Oualitv of the Existine Housin� Stock will Imarove
L Single family homes converted to rental use will decrease and owner occupied housing will increase as a
proportionate share of the housing stock
2. Remodeling permits will increase
3. Median income of households will increase
4. Housing maintenance code violations will reduce
#8 Pronertv Taxes will be Lowered or Maintained
1. Captured tax capacity will be eliminated or reduced
2. Citizens will perceive and provide feedback that the level of City property taxation is reasonable
3. The State will provide more Local Government Aid
4. The City tax base will increase
5. There will be no Increase in the tax levy
6. The comparative ranking of City property taxes will improved
budget outcomes draft.doc
2007 BUDGEi F0� c5 REVENUE SHEET 1
2005 2006 2007 2008 2008 Forecast Two oercentintrease eudeetlntrease
General Revenue
PropertyTaxes 11,288,883 11,618,486 11,739,948 D 11,739,948 11,974,746.96 234,798.%
Taxlncreme�t 4,216,246 2,682,874� 3,021,700 3,228,400 3,082,134.00 60,434.00
Franchise Fees 662,614 658,410 665,000 D-3% MAX 665,000 678,300.00 13,300.00
LodgingTaxes 710,619 738,776 650,000 ND-50% To City 640,000 663,000.00 13,000.00
Grants and Contributions not 5
retricted to specific programs 577,548 702,030 S 1,229,338 7 885,000 1,253,924.76 24,586.76
Unrestrlcted Investment Incom� 1,272,409 1,928,462 1,375,315 ND 1,070,000 1,402,617.30 27,502.30
Gain on disposal of capital assel 31,880 23,963 30,000 ND 30,000 30,600.00 600.00
Total general revenues and 18,760,199 18,353,001 18,711,303 38,258,348 S 19,085,323.02 374,222.02
Charges for Services
GovernmentActivities: 5
Ge�erel Government 297,511 289,203 433,040 433,040 441,700.80 8,660.80
Public5afety 1,OZ6,736 800,4os 5 662,500 652,500 675,750.00 13,250.00
Publicworks 9,661 259,273
community Servlces 5 5 5 5 S
Parksand Recreation 681,851 665,332 626,251 626,251 638,776.02 12,525.02
Economic Development 164,531 S
TotalChargesfor5ervices 2,015,759 S 2.178,747 1,721,791 1,711,791 1,756,226.82 5 34,435.82
Opereting Grants
Govemment Aciivitfes: s
General Government 5 S
PubllcSafety 611,886 688,023 485,000 674,500 494,700.00 9,700.00
Public works 90,000 5
CommuNty servlces 5 S 5
Parks and Recreatlon 79,827 3,899 S
Etonomlc Development 13,920 56,966 195,019 195,019 198,919.38 3,90038
Total Operating Grants 795,633 748.888 680,019 869,519 693,61938 13,60038 �i
Capital Grants and Contributions 5
Government Activitier. i
General Govemment 60,000 85,000 95,9W 90,000 97,818.00 1,918.00
Public Safety 5
Public works 2,328,345 2,117,851 2,195,535 2,415,050 2,242,505.70 43,970J0
community services 5 5 5 5 S
Parksand Recreation 30,000
Economk�Development S 5
Interest on long-term debt 5,900 5
Total Capital Grants 2,398,345 2,208,751 S 2,294.435 5 2,505,050 2,340,323J0 S 45,888.70
S
SUBTOTAL• governmental acti 23,969,936 S 23,489,387 23,407,346 S 23,344,708 23,875,492.92 468,146.92
6usiness-type activitles:
Municipal Iiquor 1,099,172 1,244�,738 1,239,765 1,250,000 1,264,560.30 24,79530
Golfcourse 256,276 250,444 298,000 S 300,OOD 303,960.00 5,960.00
Earle 8rvwne Heritage Center 1,857,461 2,168,861 2,039,542 2,200,000 2,080,332.84 40,790.84
Recyclfngand �efuse 235,160 242,588 245,100 Z50,000 250,002.00 S 4,902.00
Streetlightutillty 214,669 221,341 231,230 250,000 235,854.60 4,624.60
Water Utility 1,825,521 1,906,375 1,677,584 2,089,19Z 1,711,135.68 33,551.68
Sanitary Sewer Utllity 2,966,222 3,186,569 3,040,603 3,1$5,150 3,101,415.06 60,812.06
Storm drainage uFility 1,298,690 1,323,607 1,384,46D 1,539,154 S 1,412,149.20 27,689.20
Unrestricted Investment Incom� 199,876 337,231 335,000 330,000 341,700.00 6,700.00
5
SUBTOTAL: business-type a 5 9,953,047 10,881,754 5 10,491,284 31,063,496 S 10,701,109.68 209,825.68
TOTAL ORGANIZAl10NALREVE S 33,922,983 34,371,141 33,898,630 S 34,408,204 34,576,602.60 677,972.60
•
EXPENDITURE
ESTIMATE
� HANDOUTS
WILL
BE PROVIDED
AT THE MEETING
•
2008 BUDGET CITY COUNCIL MEETING SCHEDULE
l. June 4� Joint Work Session with Auditor regarding 2006 Audit and CAFR
2. June 18�' Joint Budget Work Session w/Financial Commission
3. July 30�' Joint Budget Work Session w/Financial Commission
4. August 20� Joint Budget Work Session w/Financial Commission
5. September 10�' Preliminary Levy and Budget Proposal
6. October 15�' Joint Budget Work Session w/Financial Commission
Enterprise Funds
7. November 19 Joint Budget Work Session w/Financial Commission
8. December 3 Initial Truth in Taxation Hearing
9. December l O Continuation Truth in Taxation Hearing if needed) and
Final Levy and Budget Adoption
2008 budget city council meeting schedule.doc
Residential Property
Increase in Taxable Market Value 32,078,200
Percentage Tncrease 2.04%
Average Value 187,256 in 2006 for Pay 2007
191,082 in 2007 for Pay 2008
...and cost the
Increase in Levy would raise average taxpayer
Property Tax Levy an additional... an additional...
0% (17.00)
1% 119,587 (8.00)
2% 239,175
3% 358,762 9.00
4% 478,350 18.00
5% 597,937 27.00
6% 717,525 36.00
7% $37,112 45.00
8% 956,700 53.00
2008 GENERAL FUND REQUESTED EXPENDITURES ESTIMATES
Base Budget Expenditures $14,279,004
o Current staffing, programs, funding levels
Wages and Fringe Benefits
0 3% Wage increase and benefit increases 539,121
Total Base Costs $14,818,125
Change in Supplies and Contract Expenses 660,681
o Inflation and expanded/new services levels
Added Employees to expanded/improved service 296,342
o Net 3.5 additional FT employees
Police (2)
Fire (1)
Com Dev (.5)
o Employee upgrades 14,366
Other to support expanded/improved services 62,023
General Fund Increase over base 1,033,412
Grant funded improvements 246,282
o Auto Theft Officer
o (2) COPS Grant Officers